Three white soldiers is a bullish reversal candlestick pattern that is seen at the end of a downtrend. It is made up of three consecutive bullish candles, and it signals that the bears have run out of steam and the bulls are taking over. This pattern can be used to identify potential reversals in the market, and it can be profitable for traders who know how to trade it correctly. In this blog post, we will discuss what three white soldiers are, how you can identify them, and what happens after 3 white soldiers form. We will also discuss the success rate of this pattern and how you can trade it for profit.
What is A Three White Soldiers Pattern?
The three white soldiers candlestick pattern is made up of three consecutive bullish candles. Each candle has a higher close than the previous candle, and they all have small wicks. This pattern signals that the bears have run out of steam and the bulls are taking over. This pattern can be used to identify potential reversals in the market, and it can be profitable for traders who know how to trade it correctly.
How To Identify Three White Soldiers?
In order to trade three white soldiers successfully, you need to know how to identify them.
The first thing you need to look for is a downtrend. This is essential because three white soldiers only form at the end of a downtrend. Once you have identified a downtrend, you need to look for three consecutive bullish candles. Each candle should have a higher close than the previous candle, and they all should have small wicks. If you see this pattern forming, they are definitely 3 white soldiers ready for the trading battle!
The Success Rate of 3 White Soldiers
The success rate of three white soldiers is quite high. In fact, this pattern has a success rate of over 70%. This means that if you see this pattern forming, there is a good chance that the market will reverse and go higher. However, it is important to note that this pattern does not always work and there are no guarantees in the markets.
How To Trade The Three White Soldiers Pattern?
If you do see three white soldiers forming, it is important to take a long position as soon as possible. The reason for this is that the pattern has a high success rate and you want to get in on the move before it reverses. Once you are in a long position, you can hold onto your trade until the market reverses or you can take profits at the next resistance level. Your stop loss can be set to a few pips below the 3 white soldiers pattern.
There you have it! That is everything you need to know about three white soldiers. This pattern can be a great tool for identifying potential market reversals. If you see this pattern forming, make sure to enter a long position as soon as possible. And remember, always use stop losses and take profits at predetermined levels to protect your capital.